Banks and foreign governments are mounting an increasingly desperate push against a sweeping US tax law that will force overseas institutions to report their American clients to the Internal Revenue Service.
The Foreign Account Tax Compliance Act was passed by Congress last year and comes into force in 2013.
Sound good to you? Well, its nonsense. If the tax laws were less onerous and the pigs in power stopped spending our money and enacting laws for their own enrichment, taxes would be lower and compliance higher.
Naturally, there are ways around this monstrosity:
“There’s a big loophole in Fatca,” said Dirk Suringa, a tax lawyer at Covington & Burling and a former Treasury official. “It does not prevent US taxpayers from opening a hidden foreign account at a complicit foreign bank that holds only foreign investments. It leaves open the possibility of continued cheating if people sell their US direct and indirect assets, which is another thing we do not want.”